The rate just follows FHLB bond prices, which move roughly in tandem with treasurys since the FHLB is a GSE with an implicit guaranty.

I think I am gonna pass on the deal, the financing I can get at the moment isn't great (5 year ARM) and with my understanding of economics I don't want to position myself near anything that is based on long term treasury rates.

A large landlord/PM here did that, went to court with several issues one of which was keeping the depositBroker here told me they had to show qualified repairs made for damages, for several years, if not qualified repairs they were ordered to go back and to pay all back deposits to the state treasury including fines to the court.

Department of the Treasury created the TARP to invest in certain eligible financial institutions in the form of non-voting, senior preferred stock.

This is not to say that their will not be a downturn but not a massive 90% drop nor will treasury rates sky rocket either.

So it might be fixed for 5 years, then begin to float at something like 1yr treasury + 3.25% (referred to as a 5/1 ARM).Google the BP site for "portfolio loans" to get more information.

I guess with all those jobs created there will be no need to raise taxes on anyone, because money will be flowing into the treasury!

Michael Desmond, tax legislative counsel at the Treasury Department, said last week that the Bush administration would back the measure anyway.Bush issued a statement saying he applauded the House action.

They bought into a game they could not afford to play in the first place and a 1/2 point off the Fed Fund Rate is not going to help them.Good Luck,JasonTo extend your point Jason, many of the mortgage solutions are tied to the 10 year treasury so a Fed rate cut matters rather less.

The Fed’s rate cut could cause inflation to rise and the treasury markets will react with falling treasury bond prices which causes the interest rates to rise.